2025 will be crypto’s best year ever — Steno Research
In a December 2024 research note, Steno Research projected that 2025 could be the cryptocurrency market's most prosperous year to date. They anticipate Bitcoin (BTC) reaching a spot price of $150,000 and Ether (ETH) climbing to $8,000. Additionally, the firm expressed optimism about an impending altcoin season, expecting Ether to outperform Bitcoin significantly. They predict the ETH/BTC ratio will rise to at least 0.06, nearly doubling the current level of around 0.035. This shift could lead to Bitcoin's market dominance decreasing from nearly 57% to approximately 45%, signaling a broader surge in alternative cryptocurrencies.
Steno attributes these bullish forecasts to several factors:
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Favorable Regulatory Environment: An unprecedentedly supportive regulatory climate for cryptocurrencies.
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Macroeconomic Conditions: Declining interest rates and improved liquidity creating a supportive macroeconomic backdrop.
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Post-Halving Performance: Historically strong market performance following Bitcoin's halving events.
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Institutional Adoption: Anticipated unparalleled levels of institutional adoption, bolstered by significant inflows into U.S.-based Bitcoin and Ethereum exchange-traded funds (ETFs). Steno projects net inflows of $48 billion for BTC ETFs and $28.5 billion for ETH ETFs in 2025.
The firm also suggests that the recent U.S. presidential election results may favor altcoins more than Bitcoin. They argue that the new administration could encourage more robust on-chain activity, benefiting platforms like Ethereum and Solana. Consequently, they expect the total value locked in decentralized applications to exceed $300 billion in 2025, surpassing the previous high of approximately $180 billion in 2021.
These insights underscore a growing optimism within the industry, with analysts anticipating significant growth and development in the cryptocurrency market throughout 2025.